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Relax production restrictions? Production of 32 steel rolling enterprises in Fengrun District of Tangshan
May 19,2020 22:27CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

 

This evening, the Tangshan municipal government suddenly issued a notice to adjust the management and control measures in May, saying that 32 steel rolling enterprises would be allowed to produce on the premise of meeting the emission standards, sending out a signal of loosening production restrictions. However, on May 17, Tangshan issued a series of emission reduction tasks in a notice of tightening control measures in the second half of May, including the suspension of production by independent steel rolling (excluding cold rolling) enterprises. Production restriction policy has been repeated, whether the rising prices of the booming steel market in recent days will come to an end?

On the evening of the 19th, Tangshan issued a notice on adjusting the tightening control measures in May in Fengrun District of Tangshan City, which is as follows:

In view of the fact that the steel rolling enterprises in our region account for a large proportion of the industry in the region, which has a great impact on the economic indicators and social development of the region, and most of the enterprises have completed the in-depth treatment of environmental protection, and some enterprises have reached the standard of "good" environmental protection governance, in order to encourage the development of enterprise scale and green environmental protection, the Ecological Office of the Economic District has studied. Special permission is given to 32 enterprises that not only belong to enterprises above scale, but also reach the "good" standard of environmental protection governance, as well as electric heating enterprises to produce under the premise of meeting the emission standards during the second half of May.

Spurred by the news of environmental production restrictions and superimposed price increases in steel mills, the steel market has shown bright performance in recent days, with spot prices of threads and hot rolling rising sharply. At the same time, the market generally expects that environmental protection production restrictions will be tightened before and after the two sessions, further boosting steel prices. However, now the production restriction policy is repeated, and more than half of the steel rolling enterprises are allowed to produce under the premise of meeting the emission standards. as soon as the news is announced, the whole line of black futures is green.

According to SMM research, after Tangshan issued the notice of tightening control measures on May 17, the steel rolling mills in Tangshan area did not really stop production, and most rolling mills said that there was a high probability that they would continue production and only considered a small reduction in production according to the situation at that time after the beginning of the two sessions. And now Tangshan once again adjust the production limit policy, relax the scope of production restrictions, SMM analysis that this has less impact on the actual steel supply, more reflected in market sentiment. SMM will continue to pay attention to the relevant environmental protection policy developments and follow up the report in a timely manner.

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